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Please refer to the data above. 1. What is the amount of annual depreciation should Star Company recognize in relation to the leased asset? 2.

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Please refer to the data above.

1. What is the amount of annual depreciation should Star Company recognize in relation to the leased asset?

2. What amount of finance cost should Star Company recognize during 2018?

Please do include the solution. I will be using this as part of my reviewer. Thanks.


For number 1 the choices are:
a) None
b) 35,539
c) 39,539
d) 40,000
For number 2 the choices are:
a) 50,852
b) 55,011
c) 56,862
d) 63,262

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